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In the State of the Nation Address (Sona), President Cyril Ramaphosa said government intend to create no fewer than two million new jobs for the youth in the next decade. The President reiterated this at the June 16th Youth Celebration held in Polokwane. The President further went on to indicate that his administration would support platforms that promote self-employment in rural areas and townships. He added that small business incubation centres would be rolled out to provide youth-driven start-ups with financial and technical advice.
Despite many efforts undertaken by both government and private sector focusing on entrepreneurship and participation of youth in the labour market , youth unemployment still needs attention and various interventions lack impact. As the President said. “the brutal reality is that when it comes to youth unemployment, we have to run just to remain in the same place” therefore youth unemployment will require a comprehensive approach whith myriad interventions complementing and augmenting existing interventions, and scaling up and expanding their reach and scope
Research by Ernst and Youth in 2015 found that 65% of the 2,800 young people surveyed around the world want to run their own business at some point in their careers These ambitions are particularly strong in developing markets Therefore the challenge is to create an environment with supporting systems that will enable young people realise their ambitions.
In heeding the call of the President of doubling our efforts to stem the tide of unemployment, UNDP in South Africa will launching a Youth Entrepreneurship Challenge Fund which is aimed at providing support business development support and financial support to young entrepreneurs under the age of 35 years.